Strategy logistics companies
“Logistics” and “strategy” are interrelated terms in a business organization. Demarcate each item separately while linking them multiple advantages granted to any company.
First things first – as Jack the Ripper said. The first thing is to be clear that logistics is a strategic tool to enhance competitiveness and, consequently, the production system of a country.
The RLEC organization (Reverse Logistics Executives Council) defines logistics activity as “the process of planning, implementing and efficiently control the flow of raw materials, work in progress, finished goods and related information with them, from the point of origin to the point of consumption in order to meet customer requirements. ” logistics has a very complex and cross structure. It is necessary to develop a logistics strategy to launch this process.
The company will be responsible for managing, subcontract or outsource the entire set of activities that include logistics. This includes the organization and management of all activities aimed at obtaining, moving and storing materials and products from acquisition to suppliers to its distribution to customers and consumers (including the process of purchasing, inventory management, transportation, customer service, storage or processing of goods).
WHAT SHOULD A COMPANY TO ACHIEVE A GOOD LOGISTICS STRATEGY?
The answer is simple: start by designing a logistics plan that includes raw materials and suppliers, production facilities and storage, information channels and distribution networks and sales.
The important thing is not only to produce a good and competitive costs, but getting through logistics make available to the customer for products and services they demand, at the right time and in the right place in ideal conditions and optimal cost , in order to meet the requirements of the supply chain as effectively and efficiently as possible.
“Supply chain” is another concept that has gained momentum in recent years. The supply chain covers the entire life cycle of a product or service since it is conceived until it is consumed. And it is related to logistics and logistics business strategy.
Within the supply chain of a company or set of companies three basic areas of logistics activity are distinguished:
The procurement process: deals with the management of materials between suppliers and the company.
The production process: manages all production operations manufacturing centers.
The distribution process: includes product management to customers and consumers.
The optimal management of the supply chain involves both internal and external activities of the company and is linked to infrastructure (warehouses, transport …), processes (information systems and its treatment and management methods) and management (human resources and agents involved in the logistics company).
In this regard, three types of logistics strategies, depending on how many middlemen involved in the logistics process are distinguished:
Selective logistics strategy: what is chosen and how many intermediaries are part of the distribution. That choice depends on the characteristics of the product or service, competition and target audience.
exclusive logistics strategy: This strategy limits the number of outlets only to our product and no other.
intensive logistics strategy: its aim is to cover as many possible distribution channels in order to reach the target audience. It is ideal for mass consumption products
The term “supply chain” was first used by the consultant Keith Oliver in 1982. In the mid-90s began publication on this subject and has been in the XXI century when companies have begun to adopt new organizational forms following this term. The economic crisis we are experiencing has led companies – especially SMEs – to develop in greater depth the supply chain by reducing economic, either internally costs or partnering with other companies (known as horizontal distribution). the importance of logistics strategy in start-ups is also observed. It is recommended logistics study allows further deepening in the processes described.
HOW IS THE LOGISTICS STRATEGY IN SPAIN?
The following table shows a SWOT table with this reality by reference to the prepared by the specialized platform Logistop:
Lack of planning estratégica.- weaknesses-Shortage of skilled human resources and management level formed Logistics.- Reluctance to innovation and incorporating technological developments by the business sector español.- Lack of collaborative culture between different agentes.- typology of the industrial structure of the logistics sector (predominantly SMEs) .- Insufficient development of logistics operators especializados.- High dependence transport carretera.- Lack of global vision to manage existing infrastructures. Threats- Absorption of logistics processes by large Spanish organizations not due to poor development of operators locales.- Delayed Spanish industrial landscape on the areas of improvement industriales.- Excessive Regulation: lack of harmonization in the legislative and regulatory, at regional, national and European level.
Strengths-business awareness of the importance of logistics as a differentiating factor competitividad.- stable situation of sustainable economic growth in Spain, which allows industrial development and new inversiones.- Existence of logistical know-how for global development logistics management in Spain from a starting point more fiable.- Optimal geographical position of Spain as a gateway to Europe, Africa and Latinamerica connection as well as a good strategic position of its ports for trade with Asia.- Adaptation progressive and correct to environmental regulations and trazabilidad.- Increased tourism has associated the movement of people and thus the movement of the materials that these people need to cover their living demandas.- High capacity in Spain, making it an attractive country for the location of business activities. Opportunities- market globalization and trade, contributing to the emergence of new business opportunities for the industry española.- Increased practice of reverse logistics, both aspects of environmental and returns products.- Progressive development of activities R + D + i that enhances collaboration between the science and technology system with tissue empresarial.- Boosting public and private level and consolidation of infrastructure logísticas.- Ability to make Spain Logistics Center in Southern Europe Growth .- logistics market: due to the new global economic paradigm: globalization, offshoring, reduced life cycle of products, more demanding customer, etc.
Currently, organizations today are exposed to rapid changes due to the high risks that generate economic, political, social and technological variables. At this point it is vital the role of a logistics strategy, since it generates added value to the supply chain, ensuring customer response and to achieve the objectives of the company. To go deeper into this aspect is recommended a course empresarial.La logistics logistics is an integrated business process, associated with good management and administration of the different flows (capital, goods and services, people) and whose development impacts the performance of organizations and promotes competitiveness.
Also, in recent years many organizations have committed to developing a horizontal distribution logistics structure, creating with its customers and suppliers logistics networks whose aim is to generate synergy between two or more companies in the same or more sectors. In this way, organizations gain more knowledge and skills while achieving greater bargaining power and logistics structure, minimizing logistics costs.